Soft International (2569) H1 2025 earnings summary

Executive summary

• H1 revenue rose 33.2% YoY to RMB439.3m; profit for the period increased 23.0% to RMB30.5m.

• Hong Kong listing completed on 27 March 2025, raising net proceeds of HK$85.1m.

Financial highlights

• Revenue increased RMB109.6m YoY to RMB439.3m; cost of sales rose 30.3% to RMB292.1m, broadly in line with higher sales volume.

• Gross profit increased 39.4% to RMB147.2m; gross margin improved to 33.5% from 32.0%.

• Selling and distribution expenses rose 76.6% to RMB84.6m, mainly on online promotion and distribution costs; administrative and other operating expenses increased 23.4% to RMB24.3m.

• Profit attributable to owners rose 23.0% to RMB30.5m; profit before tax was RMB36.8m and income tax expense RMB6.3m.

• Listing expenses fell to RMB4.9m from RMB8.2m; both periods’ listing expenses were non-deductible for tax purposes. Basic and diluted EPS were RMB3.46 cents versus RMB3.30 cents.

Outlook and guidance

• 2025 plans include two additional babycare lines and one nonwoven fabric line; a new Shishi production base is under construction, with uses still being planned.

• Priorities include expanding feminine care, strengthening babycare, building brand awareness and D2C sales, entering attractive categories, innovating products and improving operating efficiency.

• Four new Jinjiang lines—one babycare and three feminine care—were in trial production; all were established during H1.